High Island Offshore System, L.L.C.

Third Revised Volume No. 1

Effective Date: 04/07/1999, Docket: GT99- 17-000, Status: Effective

Original Sheet No. 110 Original Sheet No. 110 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

Shipper and HIOS shall have the right to examine at

reasonable times, books, records, and charts of the other to

the extent necessary to verify the accuracy of any

statement, charge, or computation made under or pursuant to

any of the provisions hereof.

10.2 Payment. Shipper shall pay HIOS, at its general office, or

at such other address as HIOS shall designate, no later than

ten (10) days after the date of the statement, the amount

due for the preceding month. All payments shall reference

the statement number.

If presentation of a bill by HIOS is delayed after the 9th

business day of the month, then the time of payment shall be

extended accordingly unless Shipper is responsible for such

delay. Should Shipper fail to pay all or any portion of

the amount of any bill as herein provided when such amount

is due, interest on the unpaid portion of the bill shall

accrue at the rate specified in Section 154.67(c)(iii) of

the Commission's regulations. If such failure to pay

continues for 30 days after payment is due, HIOS, in

addition to any other remedy it may have hereunder, may

suspend further delivery of Gas until such amount is paid;

provided, however, that if Shipper in good faith shall

dispute the amount of any such bill or part thereof and

shall timely pay to HIOS such amounts as it does not in good

faith dispute and, at any time thereafter within 30 days of

a demand made by HIOS, shall furnish a good and sufficient

surety bond in an amount, on a form and with surety

satisfactory to HIOS, guaranteeing payment to HIOS of the

amount ultimately found due upon such bills after a final

determination which may be reached either by agreement or

judgment of courts, as may be the case, then HIOS shall not

be entitled to suspend further delivery of Gas on account of

non-payment of such sum unless and until default be made in

the conditions of such bond. For any amount to be